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TB MC Qu. 22-110 (Algo) Brownley Company has one service... Brownley Company has one service department and two operating (production) departments. Payroll Department costs are

TB MC Qu. 22-110 (Algo) Brownley Company has one service...

Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated to the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period:

Department Direct Expenses Number of Employees
Payroll $ 24,000
Milling 79,000 33
Assembly 108,400 77

The total cost of operating the Milling Department for the current period is:

Multiple Choice

  • $95,800.

  • $7,200.

  • $16,800.

  • $86,200.

  • $79,000.

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